Analysis of the Indian Chyawanprash manufacturer YuvAnaH

Analysis of the Indian Chyawanprash manufacturer YuvAnaH Company profile: YuvAnaH is an Indian company which manufactures Chyawanprash. It was established in 2004. It is positioned as a company which manufactures exclusively Chyawanprash. It is known to have provided good quality Chyawanprash for all age groups, across social boundaries. It has received various certificates over the years which include Certificate of Good Manufacturing Practices to manufacture Ayurveda, HACCP and GMP Certification in compliance with the Food Drug Administration regulation. YuvAnaH is ISO 9002 certified. Vision: Focus on growing their core brands across categories, reaching out to new geographies, within and outside India. Mission Their mission goes beyond the mere provision to heal ailments and extends to helping people live long, healthy and productive lives. They seek to explore harness the tremendous potentials of Ayurveda offer the goodness for human welfare. Objectives: Products: YuvAnaH Chyawanprash: This is ordinary Chyawanprash. It contains all the basic ingredients of Chyawanprash and can be consumed by people belonging to all age groups. YuvAnaH Chocolate Chyawanprash: This is chocolate flavored Chyawanprash targeting children and people who favor chocolates. It will be marketed as a product with added benefits of chocolates. YuvAnaH Sugar-free Chyawanprash: This is targeted to diabetic patients since it does not contain artificial sweeteners. YuvAnaH Chyawanprash (for summer):This Chyawanprash is specially made for the summer season to provide protection against infections that are common during the season. YuvAnaH Diet Chyawanprash: This product is specially designed for the Diet conscious with particular ingredients. YuvAnaH Chyawanprash (for pregnant women): Pregnant women are advised not to have chyawanprash. This product will cater to the needs of a pregnant woman. YuvAnaH Chyawanprash (for Skin): This product contains added herbs which are beneficial for a glowing skin. According to Ayurveda, Chyawanprash comes under the category of Rasayana which aims at maintaining youthfulness, vigor, vitality of the body and keeping away aging process, senility and debility. It maintains the proper functioning of the cells and rejuvenates the cells. However, the main ingredient, regardless of the exact formula is always amla or amalaki, a tropical gooseberry that is the worlds richest source of vitamin C. It is, moreover, a source that remains stable in storage for years. Digestive and immune system: Chaywanprashs basic ingredient amla has 30 times more vitamin C than orange and helps in strengthening the immune system and expediting the healing process. Regular intake of chyawanprash strengthens digestion, absorption and assimilation of food and balances stomach acids. Heart and Brain The perfect blend of Ayurvedic herbs acts as a cardiac stimulant and nourishes the brain cells by supporting the nervous system and enhances co-ordination and memory power. The tonic is good for students as it increases retention and recall. Lung, Liver and Kidneys The smooth functioning of the lungs is facilitated by the regular intake of chyawanprash.Chyawanprash helps purify blood and invigorates the liver and helps to eliminate toxins. It helps the downward flow of energy in the body and eases constipation. Other Benefits The holistic traditional formula of chyawanprash improves skin complexion, glow and fights dermal bacterial infection. It promotes hair growth and helps absorption of calcium resulting in strong bones and teeth. It is especially good for alleviating cough and asthma. The anti-oxidant properties of the tonic act against the ageing process and maintain youthfulness. Canada Canada: Canada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean. It is the worlds second largest country by total area, and shares land borders with the United States to the south and northwest. Demographics: Capital: Ottawa Largest City: Toronto Currency: Canadian Dollar Population of Canada: (2008  estimate) 33,157,200 (0.51% of World population) Population growth rate: 0.869% Birth Rate 10.75 births/1,000 population Density: 3.2/km ²Ã‚  (219th) It is the worlds second largest country by total area.(Area: 99884670 km^2 Even though the density is just 3 persons per square kilometer , a majority of population is concentrated in the narrow band along the U.S. border, leaving a major portion of the land mass unoccupied. Distribution of population: Population Distribution by Age Group 0-14 17.9% 15-64 69.1% 65+ 13.0% Population of Main Metro Areas: Toronto 5,203,571 Montreal 3,607,150 Vancouver 2,159,994 Ottawa-Gatineau (Capital) 1,142,708 Calgary 1,037,136 Edmonton 1,001,636 Quebec City 710,801 Hamilton 702,396 Winnipeg 698,210 London 459,697 Considering the fact that a majority of population lives in the metros mentioned above, majority of our marketing promotions will concentrated in those areas. Economic Environment: Gross National Product: $760 Purchasing power parity(per capita) $29,400 (According to the World Bank Economic Groups, Canada falls under the high per capita income category) Canada was the only country from G7 to record a surplus in 2006 and 2007. It was estimated to be the only country from G7 to record a surplus in 2008 as well. Canada is on track to eliminate its net debt by 2021. By doing so, Canada will be able to count itself among the very few OECD (Organization for Economic Co-operation and Development) countries that are in a net asset position. The OECD forecasts Canadas surplus will be 0.8  per cent of GDP in 2008, compared to an expected average deficit of 2.7 per cent in the G7 countries. Trade and Economic Organization Memberships Asia Pacific Economic Co-operation Commonwealth Group of Eight (G8) International Monetary Fund La Francophone North Atlantic Treaty Organization Organization for Economic Co-operation and Development Organization of American States United Nations (and its subsidiary agencies) World Bank World Trade Organization Thus, the size of the market and the nature of the economy portray a positive economic environment of Canada and favor the establishment of business relations with it. Cultural environment: Established in 1867 as a nation without war or rebellion, Canadians are most likely to be described as friendly, peaceful, polite, modest. They have a unique culture and deeply rooted values and traditions and though they enjoy cordial relations with their neighbor; the United States; they are not Americans. They love to laugh , often at their own expense, since they dont always take themselves too seriously. Language: Unlike many countries Canada has 2 official languages; English and French. A majority of French speakers-called francophones-live in Quebec. Thus they have a bilingual culture. This fact will be kept in mind by resorting to bilingual labeling and advertising and bilingual press releases. Creativity: Canadians value creativity and support its nurturing in all walks of life. They are not resistant to change. Attitudes and Values: Canadians struggle with how to promote their image as Canadians and separate themselves from Americans. Our marketing strategies will take care of this cultural factor. Canadians are practical in their approach. They speak their minds and voice their opinions and are open to those of others. British novelist Douglas Adams said each country was like a particular type of person, and Canada is like an intelligent 35 year old woman. America, on the other hand, is a belligerent adolescent boy Canadians tend to dislike excessive promotion. It is favorable to skip the hype and focus on the facts. They also tend to dislike companies which make negative comparisons with Canadian products. Religion: Canada has a wide mix of religions and there is no official religion of Canada; though a majority of the population follows Christianity, followed by a large number of people who claimed to have no religious affiliation. Family structure: a typical family structure in Canada in 2005 was a spouse and no children below the age of 13; at least one child between the age of 13 and 24. Political Environment: Canada has a federal parliamentary democracy within a constitutional monarchy. In general, Canadian politics have not operated through revolutionary, swift changes. Instead, change is typically slow and worked out through compromise between interest groups, regional consultations, and the government of the day. India and Canada have always had a healthy trade relationship. Thus , political environment is also favorable and there will not be any major issues as far as the government is concerned. Legal Environment: Canada can guarantee investors the overall lowest tax rate among developed countries. One important factor is the legal system in Canada is that although their criminal law system nationally and the civil law system in most of Canada is based on the English precedent-based system of common law, civil law in the Province of Quà ©bec is based on the French Code Napolà ©on. For this reason, we should ensure that our Canadian legal advisors are well versed in both systems. Few laws that are different to Quebec particularly are as follows: Generally speaking, a French firm name may be accompanied by its English version, provided that the French version appears at least as prominently; however, in  some cases, use of the English version of a firm name is only permitted if the French version is markedly predominant, meaning the French text must have a much greater visual impact than the text in another language. Product labelling:  Every inscription on a product,   its container or   wrapping, or on a leaflet, brochure or card supplied with it, including the directions for use and warranty certificate, must be drafted in French. Public signs, posters and commercial advertising:  Public signs, posters and commercial advertising may also be bilingual, provided that the French is markedly predominant. However, large billboards or signs that are visible from any part of a public highway must be exclusively in French, unless they are displayed on the firms premises. Likewise, signs on public transportation vehicles, such as buses and subways, must be exclusively in French, unless they are used regularly to transport passengers or merchandise both inside and outside Quà ©bec, in which case the signs may be bilingual. Any corporation that contravenes the Charter is liable for each offence to a fine of up to $1,400 and, for any subsequent conviction, to a fine of up to $7,000. All shipments to Canada are also subject to the 7% Goods and Services Tax (GST), a multi-stage sales tax. About Health Canada: The new face of the average Canadian health care consumer belongs to a well-educated, middle-income, middle-aged woman who is actively involved in her own well-being. She is very interested in diet and nutrition, longevity, alternative medical therapies, vitamins and antioxidants. And shes willing to pay: she spends between $500 and $1000 a year on health supplements. Respiratory and cardiovascular diseases are the major reasons for hospitalization in Canada. Other reasons include digestive diseases, genitourinary diseases, poisoning, mental disorders etc. A chart showing leading causes of death in Canada is as under: . Canadians are health conscious and try to make healthy eating decisions. According to a new study conducted by Ipsos-Reid on behalf of Sleeman Breweries, nine in ten (93%) Canadians say they try to be health conscious when making decisions about what to eat. The factors which play an important role in the eating habits of Canadians are as follows: Source: Tracking Nutrition Trends survey Key motivators to change/ improve eating habits Percentage To maintain personal health 58% To lose weight 22% To accommodate the needs of family members 10% To prevent disease 8% To look better 8% The relative importance of each of these factors, however, differed according to age, with responses related looking better being more prevalent among adults under the age of 25 (17%) and responses related to maintaining health and preventing disease being more prevalent among those over the age of 45. National Population Health Survey (NPHS) also indicated that the single biggest reason reported for avoiding or choosing certain foods for both women (80%) and men (63%) is maintaining or improving health. Diabetes: We all know that there is no quick fix for diabetes. More than 2 million Canadians have diabetes, over one third of them arent diagnosed. Forty percent of Canadians with diabetes develop long-term complications such as high blood pressure, vision loss and kidney disease. It is clear that diabetes has become a public health challenge of major proportions in Canada. Many cases of type 2 diabetes could be prevented by making healthier living choices. Childrens eating habits: Unhealthy eating habits during childhood can interfere with optimal growth and development Poor diet can predispose to a number of serious illnesses, such as cardiovascular disease and some cancers, and lead to a poorer quality of life. Increases in other nutrition-related risk factors for chronic disease in children such as hypertension, hypercholesterolemia and type 2 diabetes have also been found. Poor diet has also been linked to low academic performance, classroom behaviour problems and low self-esteem among school-age children. The Canadian Community Health Survey found that seven out of 10 children aged four to eight, and half of adults, did not eat the recommended daily minimum of five servings of vegetables and fruit. Children age four to eight years consumed fewer vegetables and fruit on average than any age group, 4.18 servings per day. Among girls aged 10-16 years, 83% did not consume the recommended three daily servings of milk products. More than a fifth of total calories consumed by 4-18 year olds and 18.2% of calories consumed by four to eight year old children came from the other foods category. More than a third of these other foods were reported as soft drinks, sugars, fruit drinks, animal fats, chocolate bars and potato chips. Among youth aged 14-18, one quarter of all calories came from other foods. The growing number of older and longer living Canadians, faced with health problems and being more prone to illnesses and injuries, have supported sales of medications and healthcare services in the country. Recently, a research showed that many Canadians are increasingly turning to preventive care and self-medication, thereby increasing the scope of health products like Chyawanprash. Marketing Mix: Products: YuvAnaH Chyawanprash YuvAnaH Chocolate Chyawanprash. YuvAnaH Sugar-free Chyawanprash. YuvAnaH Chyawanprash ( for summer) YuvAnaH Diet Chyawanprash YuvAnaH Chyawanprash ( for pregnant women) YuvAnaH Chyawanprash ( for skin) All YuvAnaH products will be available in a standard size of 500 gms. Branding: All our products will be branded under the name of YuvAnaH which is Sanskrit for the youthful, thereby following Umbrella Branding. Ayurveda is native to the Indian Subcontinent. Thus, the Sanskrit name YuvAnaH implies a Made in India image which works favorably for the company. Packaging and labeling: Our product will be packed in HDPE plastic containers which will be sealed with a golden foil. The federal Consumer Packaging and Labeling Act require bilingual designation of the generic name on most prepackaged consumer products. Under this Act, the following information must appear on the package/label of a consumer good sold in Canada: Drug Identification Number (DIN), Natural Product Number (NPN) or a Homeopathic Drug Number (DIN-HM) This is to ensure the people about the safety of the product. Since Canadians tend to make healthy eating decisions; the package of the product will emphasize the nutrients and herbs it contains along with its benefits. Other relevant information includes Name of the product Brand name of the product ,Country of origin ,Name and address of the local importer, Date Marking, Manufacturing, Date ,Expiry Date , Storage Batch Number and Packaging Date(PKD, )Precautionary Message ,Bar Code, Dosage, Nutritional Value (different for various flavors,) Ingredients (different for various flavors). Promotion Mix: Analysis: Electronic Media: Television in Canada: The Canadian Broadcasting Corporation (CBC) operates both English-language and French-language national television networks. Both networks broadcast on two channels, one with regular programming and one with all-news programming. There are two private national television networks: CTV, broadcasting on two English-language channels (regular programming and all-news) and Global Television, broadcasting on a single English language channel. There are also 105 independent television stations in Canada. Over 98% of Canadian households own Television sets. 2 out of 3 households subscribe to Cable TV though over-the-air local television is free. 85% of Canadian consumers agree that they are too obsessed with images of youth. They feel alienated by advertisements that do not portray people like me. Government control: Quebec: Section 248 of the Consumer Protection Act 1980 provides that no person may make use of commercial advertising directed at persons less than thirteen years of age. Radio Canadians spend more time with radio compared to the US (22.2 hrs weekly) and radio enjoys a larger share of ad spending in Canada. Print Media: The newspaper with the highest circulation is the Toronto Star, and the newspaper with the highest readership per capita is the Windsor Star. Readership of community newspapers is strong despite the size of the market 70.4% of the ComBase sample read the most recent issue of their community newspaper. These readers are loyal; with most reading all 4 of the last 4 issues They read with attention reading most or all of each issue Community newspapers get high ratings from their readers. Community newspapers capture a very high proportion of exclusive readers. Point of Purchase advertising: 72% of big boxes were added in the previous nine years. 59% of all big box locations are on expressways. This gives a scope for sales through point of purchase advertising. Perception of Ayurvedic Medicines: In 2005, the Canadian government had banned the sale of Indian ayurvedic medicines in the country claiming that they contain high levels of metals like lead and mercury and arsenic, posing grave health risks. Improper manufacturing processes may result in dangerously high level of heavy metals remaining in the final product. However YuvAnaH Chyawanprash is not included in the products that are banned. Our company obtained the certificate of Good Manufacturing Practices in 2001 and also ISO 9002 certification in 1999. The products are manufactured as per Indian Standards. Authorized natural health products will either bear an eight-digit Drug Identification Number (DIN), a Natural Product Number (NPN) or a Homeopathic Drug Number (DIN-HM). This authorization indicates that the product has been assessed by Health Canada for safety, efficacy and quality. All our promotion programmes will highlight the fact that our products are legal and completely safe for consumption. Place Mix: Entry Strategy: We intend to enter Canada by directly exporting our products. The company has two distributors in Canada; one in Toronto and one in Vancouver. As shown in the demographics, these are the most populated metros of Canada. They also happen to be the cities where most of the Canadians live. These distributors stock the products in their warehouses and regularly supply to retailers over there. They have major tie-ups with many super markets and these markets sell their products. We will follow 4 level channel of distribution involving our importer, distributers and retailers. Through our distributors YuvAnaH will reach out to all the major cities of Canada some of which are Toronto Montreal, Vancouver , Ottawa-Gatineau (Capital), Calgary , Edmonton, Quebec City, Hamilton, Winnipeg, London. Competitors: Dabur Chyawanprash: The biggest and major competitor for the company is the Dabur Chyawanprash. Dabur is already an established player in this country and has a wide range of products over here. The company has a major market share in Canada. Dabur is also a very famous brand in India and thus has the edge. Himani Sona Chandi Chyawanprash: There are other competitors such as the Himani Sona Chandi Chyawanprash. This company is also an established company in India and has a wide range of products in Canadian market. Its moisturizing cream Boroplus is huge success in Canada and thus has helped company strengthen its base in Canada. Tattvas Herbs Chyawanprash is also an exporter of Chyawanprash and is available in Canada. Since the major herbs required in Chywanprash are available only in India there no manufacturers of it in Canada. Competitive edge: The prices of Dabur, Himani, and Tattvas is very high .They cater only to the high spending class of people. This leaves YuvAnaH an opportunity to target the low-spending category. None of the competitors provide chocolate flavored Chyawanprash or sugar free chyawanprash in Canada. Here, YuvAnaH has an edge over the others. The only company which has franchises in Canada is Dabur . Since our company is also planning to introduce similar kind of stores where all our products would be available company hopes to face the competition fiercely.